To answer your questions:
(i) Yes, if you get IRS approval.
The costs of research and experimentation are generally capital expenses. However, you can elect to deduct these costs as a current business expense. Your election to deduct these costs is binding for the year it is made and for all later years unless you get IRS approval to make a change.
(ii) Each tax year is separate. You must include your expenses in the year your incur them.
(iii) You may be subject to AMT if you deduct certain research and experimental, intangible drilling, exploration, development, circulation, or business organizational costs. For more information on the AMT, see the Instructions for Form 6251, Alternative Minimum Tax—Individuals.
PUB 535
